Stream Finance freezes deposits and withdrawals after $93M loss
Stream Finance halted deposits and withdrawals on Nov 3, 2025 after an external fund manager overseeing its assets reported a $93 million loss. Users flagged stalled activity over the weekend, and the platform’s XUSD stablecoin dropped to roughly $0.51.
The team wrote that the fund manager notified them on Nov 2, 2025. Stream Finance retained Perkins Coie to review the incident and is pulling back liquid assets, expecting that process to finish soon. While the review proceeds, withdrawals remain suspended and pending deposits will not be processed.
Ahead of the announcement, XUSD – Stream Finance’s collateralized stablecoin, Staked Stream USD – had slid below its $1 target. Founder Omer Goldberg wrote on X that XUSD “began to depeg materially below its target range” after an over $100 million exploit on automated market maker Balancer. CoinGecko data showed a low near $0.51.
Stream Finance describes its approach as “recursive looping,” a strategy that reuses collateral to amplify yield. On Oct 31, 2025, the team addressed differences between the total value locked figure on its site and numbers on an analytics dashboard. The site now distinguishes between user deposits of about $160 million and total assets deployed across strategies of around $520 million. “DefiLlama has decided that recursive looping is not TVL per their own definitions. We disagree with this,” the team wrote.“
We are actively withdrawing all liquid assets and expect this process to be completed in the near term,” Stream Finance wrote on X. “We will provide periodic updates as additional information becomes available.”
Minal Thurkal, head of DeFi Ecosystem Growth at CoinDCX, said: “This underscores the critical importance of understanding exactly how protocols generate yield and the significant risks involved in complex DeFi strategies, especially those that disagree with standard metrics like DefiLlama’s TVL.”
As GNCrypto covered previously, Balancer suffered a $129 million exploit in 2025 after attackers abused a v2 access-control flaw to manipulate internal balances and drain pools across Ethereum, Arbitrum, Base, Optimism, Polygon and Sonic. DefiLlama estimated roughly 18% of TVL was affected. Related forks were hit; Beets on Sonic lost about $3.4 million, and Berachain paused and hard-forked.
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